The European Commission launched a consultation on new European rules for venture capital funds.

Venture capital is an important source of financing and support for innovative SMEs that encounter difficulties in accessing bank loans or listing on stock exchanges. The development of venture capital funds will improve SMEs' access to finance.

The consultation document outlines what could be the broad contours of a European passport that would be made available to venture capital funds so that they would be able to raise capital freely throughout the EU from professional investors and invest in innovative SMEs.

Once the passport had been obtained (upon registration in one Member State), the fund manager could then operate throughout the EU without having to register in each Member State where it wanted to raise capital, as is often the case today.

The consultation asks for stakeholders' input on this initiative.

The results, together with the impact assessment, will serve as a basis for an initiative on European rules for venture capital.

Interested parties are invited to send their comments by 10 August 2011.